Part 3Licensing of hydrogen pipeline projects
Modification of gas transporter licence
I1136Modification of gas transporter licence by Secretary of State
1
The Secretary of State may modify—
a
the conditions of a designated person’s gas transporter licence;
b
the terms of a designated person’s gas transporter licence;
c
the standard conditions incorporated in gas transporter licences by virtue of section 8 of the Gas Act 1986;
d
a document maintained in accordance with the conditions of licences of a relevant type or an agreement that gives effect to a document so maintained.
2
The Secretary of State may exercise the power under subsection (1) only for the purpose of—
a
facilitating or supporting the financing of the design, construction, commissioning or operation of a hydrogen pipeline project (or of hydrogen pipeline projects generally), or
b
promoting value for money in connection with a hydrogen pipeline project (or in connection with hydrogen pipeline projects generally).
3
When making modifications under subsection (1)(a) or (b), the Secretary of State must have regard to—
a
the duties in sections 1 and 4(1)(b) of the Climate Change Act 2008 (carbon targets and budgets);
b
the interests of existing and future consumers of gas conveyed through pipes, including their interests in relation to the cost and security of supply of gas;
c
costs, expenditure or liabilities of any description that the designated person may reasonably be expected to incur in carrying out its activities;
d
the need to secure that the designated person is able to finance its activities;
e
the need to secure that the designated person has appropriate incentives in relation to the carrying on of its activities;
f
such other matters as the Secretary of State considers appropriate.
In paragraph (b), “gas” has the same meaning as in Part 1 of the Gas Act 1986 (see section 48(1) of that Act).
4
The Secretary of State may modify the conditions or terms of a gas transporter licence held by a person who is or was a designated person in connection with the revocation of the person’s designation in relation to a hydrogen pipeline project.
5
For the purposes of subsection (1), each of the following is a relevant type of licence—
a
a gas transporter licence;
b
a licence under section 7A(1) of the Gas Act 1986 (gas supply licence);
c
a licence under section 7AA of that Act (gas system planner licence);
d
a licence under section 7AC of that Act (code manager licence).
6
References in this section to a designated person’s activities are to the person’s activities for the purposes of—
a
the designated project to which the modification relates, and
b
any other designated project authorised by the person’s gas transporter licence.